Enphase Energy Stock Falls On Analyst Downgrade Over Slowing Sales: Retail Turns Extremely Bearish

The brokerage said that based on its channel checks, Enphase’s solar inverter shipments in the first quarter of fiscal 2025 could come in below its projections in December.

Shares of Enphase Energy Inc. (ENPH) fell over 4% in Wednesday’s regular trading session after analysts at BWG Global downgraded the stock.

According to The Fly, BWG Global cited a slowdown in the company’s sales to downgrade the stock to ‘Negative’ from ‘Mixed View.’

Enphase reported earnings per share (EPS) of $0.94 on revenue of $382.71 million, beating Wall Street expectations.

The brokerage said that based on its channel checks, Enphase’s solar inverter shipments in the first quarter of fiscal 2025 could come in below its projections in December.

This comes after analysts at Wells Fargo, Barclays, RBC Capital, and Bank of America (BofA) Securities lowered their price targets for Enphase Energy.

Challenging market conditions in Europe, despite relatively stable demand in California and other markets in the U.S., led to the price target cuts, with BofA stating that the “underlying picture” remains “murky.”

Analysts at RBC Capital note that while Enphase has a strong opportunity to return to growth eventually, in the near term, the company continues to cede market share amid softening demand.

Retail sentiment on Stocktwits around Enphase worsened, entering the ‘extremely bearish’ (24/100) territory from ‘bearish’ a day ago.

One user thinks if the Enphase stock falls below $60, it may not return to triple digits this decade.

Enphase’s stock is down more than 12% year-to-date.

Data from Koyfin shows the average price target for Enphase is $79.55, implying an upside of 32% from Wednesday’s closing price.

Of the 40 brokerage calls, 17 had a ‘Strong Buy’ or ‘Buy’ recommendation, 20 suggested ‘Hold,’ while three had a ‘Sell’ or ‘Strong Sell’ rating.

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